Zynga Is Expected to Settle a Lawsuit Over Illegal Gambling Products For $12 Million

Social mobile games developer Zynga Inc. is about to reach its fifth settlement with the plaintiffs in a series of litigations over illegal gambling in social casino mobile applications that have been going on for over seven years.

A lawsuit was filed against Zynga as allegedly a few of the casino mobile games it is offering are actually asking players to pay for casino chips they are using virtually. This has been classified as illegal under Washington state’s laws on gambling as the games actually come into the category of games of chance and, therefore, are defined as gambling.

On June 27, the case was moved towards a resolution by the plaintiffs with their proposal for a settlement amounting to $12 million. The sum is about 25% of the reported damages by the plaintiffs, while the state law allows the amount to be from 20% to over 60%.